Rs 83,221 crore order book & FIIs increase stake: Multibagger railway infrastructure stock jumps over 5 per cent with 2.27 times spurt in volume
The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 1,925 per cent in 5 years.
On Wednesday, Rail Vikas Nigam Ltd (RVNL) shares gained 5.57 per cent to an intraday high of Rs 482.45 per share from its intraday low of Rs 457 per share. The stock’s 52-week high is Rs 647 per share while its 52-week low is Rs 165.55 per share. At the closing bell, the shares of the company were trading at Rs 474.20 per share, up 3.40 per cent from its previous closing of Rs 458.60 per share and saw a spurt in volume by more than 2.27 times on BSE.
Rail Vikas Nigam Ltd, a Navratna company was established in 2003 by the Government of India for various rail infrastructure projects. The company has delivered good profit growth of 21 per cent CAGR over the last 5 years and has been maintaining a healthy dividend payout of 33.4 per cent. As of June 30, 2024, RVNL has a strong order book of Rs 83,221 crores, focusing on railway, metro and overseas projects.
According to Quarterly Results, the net sales decreased by 27 per cent to Rs 4,073.80 crore and net profit declined by 34 per cent to Rs 222.56 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 8 per cent to Rs 21,889.23 crore and net sales increased by 16.5 per cent to Rs 1,469.53 crore in FY24 compared to FY23. The company has a market cap of over Rs 90,000 crore and the shares of the company have an ROE of 21 per cent and an ROCE of 19 per cent.
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Rail Vikas Nigam Limited (RVNL) has secured two significant contracts. The first, worth Rs 186,76,60,320.77, is awarded by East Central Railway for the design, supply, erection, testing, and commissioning of Traction Substations and associated Switching Posts in the Gomoh-Patratu section of Dhanbad Division. This project aims to upgrade the electric traction system from 1x25 KV to 2x25 KV AT feeding system and is expected to be completed within 540 days. Additionally, RVNL emerged as the Lowest Bidder (L1) for a Rs 642,56,57,822/- contract from Punjab State Power Corporation Limited (PSPCL). This project focuses on developing distribution infrastructure work for Package-3 Central Zone in Punjab, aiming to reduce HT/LT infrastructure losses under the RDSS scheme. This domestic contract is slated for completion within 24 months.
In September 2024, FIIs increased their stake to 5.05 per cent and DIIs decreased their stake to 6.33 per cent compared to June 2024. As of September 2024, the President of India owns a 72.84 per cent stake and Life Insurance Corporation of India owns a 5.96 per cent stake. The stock gave multibagger returns of 170 per cent in just 1 year and a whopping 1,925 per cent in 5 years. Investors should keep an eye on this railway infra stock.
Disclaimer: The article is for informational purposes only and not investment advice.